CBN And EFCC Launch Joint Investigation In To Suspected Forex Racketeering By Banks And Companies

CBN And EFCC Launch Joint Investigation In To Suspected Forex Racketeering By Banks And Companies....KINDLY READ THE FULL STORY HERE▶

Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) has disclosed that security agencies, including the Economic and Financial Crimes Commission (EFCC), are actively probing suspicious foreign exchange allocations and forward contracts amounting to approximately $2.4 billion.

This development stems from the recent completion of an audit concerning $7 billion in debts inherited by the current CBN administration under Cardoso’s leadership from the previous apex bank administration.

The CBN, under its new leadership, commissioned the global firm Deloitte to conduct the audit of these debts, revealing that around $2.4 billion in foreign exchange allocations from the $7 billion backlog were deemed invalid.

Expounding on this matter during a press briefing following the 294th meeting of the Monetary Policy Committee in Abuja, Governor Cardoso disclosed that security agencies are actively investigating the foreign exchange transactions flagged as invalid by the audit report. The CBN is fully cooperating with authorities by providing necessary documentation to facilitate the investigation.

Governor Cardoso emphasized that law enforcement agencies are focused on unraveling issues surrounding foreign exchange transactions that failed to meet regulatory standards. He underscored the findings of the Deloitte consultants’ report, which highlighted that a majority of the transactions did not meet payment criteria due to various infractions, including lack of valid documentation.

Several irregularities were detailed by the CBN chief, including the allocation of millions of dollars to fictitious entities and discrepancies in FX allocations without corresponding naira values. Cardoso stressed the gravity of these irregularities, labeling the numerous foreign exchange transactions under investigation as “clearly unlawful.”

Addressing the media, Governor Cardoso recalled the administration’s efforts to address existing forward transactions upon assuming office, ensuring transparency and credibility. However, upon discovering issues with the genuineness of certain transactions, Deloitte management consultants were engaged to conduct a thorough review, spanning several months.

It was determined that many of these transactions did not qualify for validation due to various reasons, including inadequate documentation and outright illegality. The CBN is steadfast in its refusal to validate such transactions and has enlisted the aid of law enforcement agencies in scrutinizing them further.

Governor Cardoso assured that if subsequent findings warrant validation of some transactions, such information will be duly communicated. However, as of now, the CBN maintains its stance, asserting that valid transactions have been appropriately addressed.

The recent announcement by the CBN regarding the clearance of valid foreign exchange backlogs, totaling approximately $1.5 billion, has alleviated pressure on the naira, leading to its rebound against the dollar across official and black markets.

Governor Cardoso hailed these achievements as significant strides towards restoring confidence in Nigeria’s economy. He encouraged stakeholders to engage in the foreign exchange market for their transactions, assuring the maintenance of an open, transparent, and liquid market conducive to economic prosperity.

Meanwhile, the ongoing probe may necessitate the summoning of bank chiefs and CEOs by security agencies. The duration of the investigation remains uncertain.

In response, some members of the Organised Private Sector of Nigeria have voiced opposition to the rejection of their forex exchange bids by the CBN. Considering legal action against commercial banks for prolonged non-honor of forex requests is under consideration by some member associations.

The CBN’s meticulous enforcement of the Deloitte FX audit results underscores its commitment to transparency and accountability in Nigeria’s financial landscape.

For more information join our WhatsApp group by clicking the link here: WhatsApp Group Invite